 Does Fintech facilitate cross-border M&As? Evidence from Chinese A-share listed firmsYichen Wang, Jun Hu and Jia Chen International Review of Financial Analysis, 2023, vol. 85, issue C Abstract: This paper examines whether and how financial technology (Fintech) affects the cross-border M&A decision-making and the performance of acquiring firms. Using a sample of Chinese A-share listed firms over the period of 2011–2019, we find that local Fintech development effectively facilitates firms' cross-border M&A activities. This effect is more prominent for firms with lower innovation capability, with higher profitability, and those in key participant provinces of the Belt and Road Initiative. We provide evidence that Fintech supports the decision-making of cross-border M&As due to the mitigation of financing friction and the decrease in information disadvantage. Further analysis also shows that the acquirer's cross-border M&A performance is higher when it is located in a province with better development of Fintech. Our paper provides new insights into the impact of technology-enabled innovation in the financial industry on the behavior of firms in non-financial industries. Keywords: Fintech; Cross-border M&As; Financing friction; Information disadvantage; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:85:y:2023:i:c:s1057521922003854 DOI: 10.1016/j.irfa.2022.102435 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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